It scrutinizes itself with the economy at a massive scale, several issues of an economy are considered. Macroeconomics is a branch of economics that depicts a substantial picture. Microeconomics also determines what products and how many products the firm should manufacture to sell? At what price the firm should offer its goods and services to the target audience? What sources of finance are to be used by the firm to commence or operate the business? How many and at what rate the workers are to be hired to work for the firm? When should the firm expand, downsize, and close the business? The important key factors of microeconomics are : A lot of microeconomic information can be gleaned from the financial statements. The main key role of microeconomics is to examine how a company could maximize its production and capacity so that it could lower prices and better compete in its industry. Microeconomics analyzes how individuals and households spend their income? How do people decide what amount to save for future contingencies? What set of goods and services best fulfills their needs and wants, in the limited income? It ascertains how the limited resources are allocated among various individuals to satisfy their wants? As well as it specifies the conditions for the best possible utilization of the resources, in order to attain maximum output and social welfare. It looks at issues such as consumer behavior, individual labor markets, and the theory of firms. Microeconomics is the study of particular markets, and segments of the economy. Economics is divided into two important sections, they are: macroeconomics & microeconomics
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |